In the journey of economic processes, after observation and attribution, we arrive at the stage of interaction. This interaction can manifest either with consent, or without. However, the nature of these interactions is significantly shaped by the concept of scarcity.
Scarcity, characterized by exclusivity and rivalrousness, plays a pivotal role in determining the mode of interaction. It is the scarcity of resources that creates the need for exchange, whether consentual or violent.
In a world of abundant resources, the need for exchange would be minimal. However, in reality, resources are scarce, and individuals must interact with others to acquire what they need or desire. This interaction can take the form of a mutually beneficial exchange, where both parties perceive a gain, or it can take an adversarial form, such as theft.
In the following chapters, we will delve deeper into the intricacies of these interactions, exploring the mechanisms of exchange and theft, and how they are influenced by the scarcity of resources. We will also examine the role of the state in facilitating or hindering these interactions, and the implications for economic prosperity and freedom.